CHESTER, England, September 11, 2013 /PRNewswire/ --
MBNA has launched two new 'Rate for Life' credit cards for
eligible UK consumers, offering them a choice of low lifetime rate
cards to best serve their financial needs.
(Photo:
http://photos.prnewswire.com/prnh/20130911/638667 )
The two new cards - the 'Rate for Life Credit Card' and the
'Rate for Life Purchase Credit Card' - have been launched for new
customers looking to either consolidate existing card debts or make
large purchases, such as a new car, holiday or home
improvements.
The new MBNA Rate for Life Credit Card is aimed at
helping consumers to use their approved credit limit to consolidate
other card balances, and offers a low promotional rate of 6.9
percent for life on all balances transferred within the first 60
days of opening an account. MBNA has also removed the handling fees
charged to transfer balances from other cards during the same
60-day period.[*]
For major purchases, MBNA has launched the Rate for Life
Purchase Credit Card as a possible alternative to a loan. The
new credit card comes with a low promotional rate of 6.9 percent
for life on all card purchases made in the first 90 days of opening
an account. The card offers an agreed line of credit with all the
flexibility and protection of a credit card, no early repayment
charges, and the freedom to make repayments on the customer's
terms, providing they make at least the minimum payment every
month.[#]
Michael Donald, Business
Development and Commercial executive for MBNA, said: "Everyone's
financial needs are different, and we're pleased to be able to
offer consumers a choice of Rate for Life credit cards so they can
apply for the one that best suits their financial
requirements."
Rates for both of these products do not change on application.
Customers are either accepted for the new Rate for Life credit
cards as offered with the 6.9 percent promotional rates, or they
are not.
The cards are available now to compare and apply for now at
http://www.mbna.co.uk.
Representative example for both cards of 16.9% p.a. variable
on card purchases. This is
equivalent to 16.9% APR representative
variable based on a credit limit of £1200.
[*] The new MBNA Rate for Life
Credit Card offers 0% handling fees on balance transfers made
within the first 60 days of account opening. The previous Rate for
Life credit card from MBNA came with a 1.5 percent handling fee for
balance transfers made within the first 60 days of account opening.
Transferring other debts to this card and paying only the minimum
amount due each month may lower a customers' overall monthly debt
repayments, but it may take them longer and cost them more to repay
what they owe. Paying the minimum may also cost them more than
other forms of borrowing with fixed repayments over a fixed period.
Other lenders may charge a fee for settling a loan early.
[#] This card could be a great
alternative to a loan if customers want to borrow at a lower rate,
but they will need to bear in mind the following when making their
decision about the financial product which best suits their needs:
The MBNA Rate for Life Purchase Credit Card comes with a low rate
promotional offer on purchases made within the first 90 days.
Customers have the flexibility to pay more whenever they want to -
so long as they always pay at least the minimum monthly payment. If
they miss a payment or go over the credit limit, they'll lose the
promotional rate for life and will pay the standard interest
rate(s) instead. Unlike a loan, the credit card does not allow them
to select the amount they'll borrow, or the term over which they'll
borrow. As such, they may want to work out their budget and
consider setting up a regular payment so that they can repay what
they've borrowed more effectively. Transferring other debts to this
card and paying only the minimum amount due each month may lower
their overall monthly debt repayments, but it may take them longer
and cost them more to repay what they owe.
Picture Caption: The Rate for Life Credit Card and Rate
for Life Purchase Credit Card from MBNA
About MBNA Limited:
MBNA Limited is a wholly owned subsidiary of Bank of America
Corporation (NYSE: BAC). For more information, visit the company's
website at http://www.mbna.co.uk.
Editor and supplementary notes:
The information contained in this press release is intended
solely for journalists and should not be used by consumers to make
financial decisions. Any consumer interested in learning more about
any of this product should visit http://www.mbna.co.uk for full
terms and conditions.